A COVID-19 Case Study: Majestic Meat Business Shift Success
April 3, 2020
By Mike Marsh, boostability.com
During these uncertain times with COVID-19, many businesses find themselves being negatively affected. Owners face the unwanted situation to send employees home, then must change their priorities and find ways to stay afloat. One small business in Utah found a way to actually thrive in the current environment. They're giving us a great example of what is possible with innovation and determination to shift paradigms and business models during this economic shift.
About Majestic Meat Company
From Majestic Meat themselves, they explain:
"Located in South Salt Lake, Majestic Meat Co. is a family owned and run business. Beginning in the year 1950, under the name "Shelton's Meat Company", the business has had a long history of providing Utah's restaurants with some of the finest meat available. In 1969, the name was changed to Majestic Meat Company. Treating customers and staff like family is part of the culture at Majestic Meat."
"We take great pride in our service and products. A close relationship with our clients is the only way we know how to operate. Unlike other large businesses, we prefer to know our customers individually. The personal touch allows us to provide honest business and trusted knowledge. This, along with exclusive and excellent products is what truly separates Majestic Meat from the competition. We have the pleasure of offering some of the highest quality meats and environmentally responsible products in the country. The relationship we share with our farms across the country gives Majestic Meat the unique ability to give our customers an experience unlike any other."
The Business Model
Majestic Meat Company's business model before the breakout of COVID-19 and social distancing measures was to deliver premium cuts of meat to high-end, local restaurants as a per-order basis. Due to restaurant closures in the restaurant industry, orders slowed to a standstill and company management had to send home delivery drivers simply because they had no deliveries to make. Majestic Meat Company had a surplus of product but no clients taking orders due to reduced foot-traffic. Things looked bleak. The owners faced the threat of a very ominous-looking livelihood for many people early on in the quarantine.
They Needed a Change
It became very clear to Majestic Meats owner Raymond Zaelit, had to make a decision before their product spoiled. He decided, in an unprecedented move for the company, to deliver directly to the community by adding an online ordering system to their website. With help from a local website expert, they added this functionality to their existing website —over a single weekend! Then they could start delivering and allowing curbside pickup at their storefront starting almost immediately. Almost exclusively through word of mouth and social media, this single move saved the business. They had to call back their delivery drivers and the community stepped up showing support to a local business by ordering the premium meats. This pivot not only helped people get the food they need directly to their homes, but also saved the business likely.
This type of business shifting to e-commerce (even if it is only during the coronavirus/COVID-19 quarantine) is not unprecedented. But the circumstances that they were presented with were. Owners made a quick shift in strategy. They picked up new customers when they realized they wouldn't make it under the current business model.
This phenomenal example of shifting a business model in a time of uncertainty to help support the local economy and protect livelihoods is admirable and something that we here at Boostability thought should be highlighted. With so much change in the consumer landscape both from a digital and brick-and-mortar standpoint, businesses must explore and make new decisions on how to reach your customers.
Reference
Marsh, M. (2020, April 3). A COVID-19 Case Study: Majestic Meat Business Shift Success. BoostBlog. https://www.boostability.com/content/a-covid-19-case-study-majestic-meat-business-shift-success
QUESTION: Comment on Majestic Meat'sBusiness Model before COVID-19 struck? To sustain and further improve their business performance, what changes did they make to their Business Model during COVID-19? If you were the CEO of this company, how would you have done things differently. Propose an alternative Business Model to the one mentioned in the case study?(10 points) (expected length of the answer is 400 to 500 words)